Labour-intensive: which production method uses a high proportion of labour relative to capital?

Labour-intensive: which production method uses a high proportion of labour relative to capital?

• A. Capital-intensive
• B. Labour-intensive
• C. Market Supply
• D. Market Disequilibrium

Answer: (B)

Labour-intensive production means using a high amount of labour relative to capital in the production process. In other words, many workers and their effort are required, while machinery and other capital inputs are relatively limited. This describes methods that rely on people rather than machines to produce goods. It contrasts with capital-intensive methods, where output depends more on machines and equipment. The other options aren’t about how inputs are allocated between labour and capital; they refer to quantities supplied in response to price or to a mismatch between supply and demand in a market.

Labour-intensive production means using a high amount of labour relative to capital in the production process. In other words, many workers and their effort are required, while machinery and other capital inputs are relatively limited. This describes methods that rely on people rather than machines to produce goods. It contrasts with capital-intensive methods, where output depends more on machines and equipment. The other options aren’t about how inputs are allocated between labour and capital; they refer to quantities supplied in response to price or to a mismatch between supply and demand in a market.